The crypto space has lost more than $2 trillion in value over the past year. But for crypto loyalists, this is just another Crypto Winter. Remember 2018—when Bitcoin prices dropped 80%, and the media called it “dead” over 90 times? Don’t worry, they say. The Fed is raising interest rates and inflation and recession fears are making investors skittish, so they’re simply pulling back.
The meltdown of the world’s second-largest crypto exchange, FTX, the blowup of Luna and its sister algorithmic stablecoin TerraUSD, and the collapse of high-profile crypto lenders like Celsius and BlockFi, are merely bumps in the road, crypto proponents argue. But William Quinn, a senior lecturer at Queens’ University Belfast whose research focuses on financial bubbles, isn’t so sure.
